Analysis of Tesla's Business Strategy in China

Abstract

With the outbreak of the COVID-19, the rise of the peers, and the spread of public opinion, Tesla has constantly adjusted its strategy to improve its producing technology, and they’re creating more and more sells amount. However, Tesla is facing severe international competition these days. This paper will start from three aspects of Tesla's current difficulties: business strategies, influencing factors on the price of Model 3 products, and adopts the method of literature research to study Tesla's competitive strategy. The research results show that Tesla's problems in quality control and after-sales, as well as independent research and development of new energy batteries are the biggest challenges Tesla faces. This study establishes an important development strategy for new energy vehicles represented by electric vehicles, which brings opportunities for the promotion of new energy vehicles and is conducive to the promotion mode and experience operation of Tesla's new energy vehicles in the Chinese market.